Governor steps in to end VAT stalemate in Jharkhand

RANCHI: Even as the traders continue their agitation against value added tax (VAT) on foodgrain, potatoes and onions, the state government on Tuesday swung into action to ensure that there was no shortage of these items.

On the eve of Mahasammelan of traders from the state, governor Syed Sibtey Razi asked chief secretary AK Basu to negotiate with them to end the stalemate. The Mahasammelan has been organised in Ranchi on Wednesday under the banner of Federation of Jharkhand Chambers of Commerce and Industries (FJCCI), in which a formal decision to go for on indefinite strike could be taken.

A Raj Bhavan official told ET that a high-level meeting was held on Tuesday evening to take stock of the situation arising out of the traders agitation against 4% VAT on these items. "The government is ready to consider traders��� demands. But they should not indulge in any act which may cause inconvenience to people," said the official.

The meeting was attended by advisor TP Sinha, commercial taxes secretary Alka Tiwari, food and civil supplies secretary BK Tripathi, besides others.

The governor has also asked the chief secretary to make alternative arrangements so that there is no shortage of these items if traders go on an indefinite strike. The traders have already stopped buying fresh stocks of foodgrains, potatoes and onions as a mark of protest.

The government has directed all deputy commissioners (DCs) to ensure that there is no crisis of foodgrain, potatoes and onions. They have been asked to open makeshift outlets through Krishi Bazar Kendras to sell these items. They have also been asked to deal firmly with traders indulging in illegal hoarding.

FJCCI president Anchal Kinger said he was expecting the governor to withdraw VAT on the eve of Mahasammelan.